Zim Shipping Deal Faces New Hurdles Amid Union Demands

The proposed deal to split and sell a significant portion of Israel's Zim Integrated Shipping Company is facing increasing complications, with the Histadrut labor federation now demanding clarification from the company's chairman, Yair Seroussi. The Histadrut has requested a meeting to understand the plans to transfer 99 vessels to Germany's Hapag-Lloyd, leaving only 12 ships to operate as Israel's merchant fleet. The union emphasizes the need to maintain Israel's cargo transport capabilities and operate the merchant fleet with Israeli crews, citing recent events like a Flydubai flight incident as a reason for this necessity. However, they state that no dialogue has occurred with employees regarding these plans or the company's operational needs.

This development follows the Israeli Ministry of Finance's official opposition to the deal last week. The ministry objects to the sale of Zim to Hapag-Lloyd, which is partly controlled by Qatari and Saudi government-owned companies. Hapag-Lloyd and the FIMI fund, which are jointly pursuing the acquisition valued at over $4 billion, have stated they will formulate a new plan for the deal within 45 days. This revised proposal will require further review by the Ministry of Finance, the Ministry of Transport, and the Government Companies Authority.

In response to the government ministries' opposition, the Government Companies Authority has halted its processing of the deal. The current proposal involves FIMI acquiring Zim, splitting the company, transferring 99 ships to Hapag-Lloyd, and retaining 12 ships under FIMI's operation of the Israeli merchant fleet. The deal faces broad opposition from relevant government ministries, and the Histadrut's intervention adds another layer of complexity, as they seek assurances for preserving Israeli maritime cargo transport capacity with Israeli personnel.